SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Securities Exchange Act of 1934
Release No. 38751 / June 20, 1997
Administrative Proceeding File No. 3-9334
IN THE MATTER OF STEVEN IRA WERTMAN, ROBERT BRUCE ORKIN, EDWARD CHARLES
WILLIAM DONNER, III AND EARL SETH DAVID
On June 20, 1997, the Commission instituted public administrative
proceedings against Steven Ira Wertman, Robert Bruce Orkin, Edward Charles
William Donner, III, and Earl Seth David. In the Order, the Division of
Enforcement alleges that the respondents participated in a scheme in which
Orkin, then principal officer of a brokerage firm, R. B. Webster
Investments, Inc., caused the firm to sell common stock of Teletek, Inc. in
return for secret payments which were not disclosed to its customers.
Teletek, which has its principal office in Las Vegas, Nevada, markets
international telephone calling services.
The Order specifically alleges that in 1992, Wertman, a Staten Island
stock promoter, arranged for secret payments to be made to Orkin, the
beneficial owner and principal officer of Webster, a now defunct Florida
brokerage firm. The Order also alleges that at Wertman's direction, David,
an immigration attorney, received and sold the Teletek stock from a foreign
account and made the secret payments to Orkin. The Order further alleges
that Donner, a vice president and the compliance director of Webster,
assisted Orkin in purchasing stock for resale to Webster's customers and
arranged for the transfer of the payments to foreign corporations and
accounts controlled by Orkin. In addition, the Division alleges that in
1993 Teletek issued stock to one or more foreign entities owned and
controlled by Orkin. The Division also alleges that Wertman and Orkin
manipulated the market in Teletek stock during the Spring of 1992. The
Division alleges that as a result of this conduct, the respondents
willfully violated the antifraud provisions under the Securities Act of
1933 and the Securities Exchange Act of 1934.
The Order also alleges that Wertman was indicted in U.S. v. Swan, et
al., CR-S-96-288 (D. NV filed Nov. 6, 1996), and Orkin and Donner were
indicted in U.S. v. Cozzolino, et al., CR-S-96-287 (D. NV filed Nov. 6,
1996), which are related criminal proceedings in the U.S. District Court
for the District of Nevada. Wertman and Donner have pled guilty to charges
which encompass securities fraud, and are awaiting sentencing.
The proceedings were instituted to determine whether the allegations
are true and to afford the respondents an opportunity to present any
defenses, and to determine what, if any, remedial action is appropriate.
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